Amazon.com has just announced that they are launching a new version of the Kindle eBook Reader device at a lower price point for customers that are willing to view ads along with their eBooks.
The new offering called Kindle with Special Offers presents a new pricing model which allows the company to gain a new revenue stream from advertising, while passing along a portion of those earnings as additional savings for customers willing to view the ads.
The new Kindle with Special Offers will be available at Best Buy and Target, in addition to the Amazon.com site starting on May 3rd but you can already pre-order it on the Amazon.com website at this link.
Initial advertisers include General Motors Buick, Procter and Gamble and Visa Inc.
There is already a fierce battle in the eBook Reader market. With Kindle currently positioned as Amazon.com’s best selling product bringing in $5.42 billion in revenue according to Caris & Co., this new revenue source and the ability it offers Amazon to lower the price of the device, allows it to compete even more aggressively against other top players including Barnes & Noble’s Nook, currently starting at $149 for the WIFI only model and the Kobo eBook Reader starting at $139.
I happen to already own an Amazon Kindle 3G model and I love it.
On a personal note, I don’t see this new lower priced, “Ad enhanced” Kindle as something I’d buy… The last thing I want to interrupt my peaceful reading is dealing with more advertising.
How about you?
Would you be willing to save an extra $25 off the price of your eBook Reader in exchange for “Kindle special offers?”